Early Age Co., Ltd. (3248) AI Stock Analysis

• Market Cap: ¥2.65B
• Dividend Yield: 4.42%
• Average Volume (3M): 6.88K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.44
• Revenue Growth: -30.74%
• EPS Growth: -59.99%
• Country: JP
• Employees: 15
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 7.97
• Shares Outstanding: 3,181,000
• 10 Day Avg. Volume: 7,210
• 30 Day Avg. Volume: 6,876
• PEG Ratio: 0.08
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 3.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥911.00 ▲(11.37% Upside)

Early Age Co., Ltd. demonstrates strong financial performance with solid revenue and profit growth, efficient operations, and robust cash flow generation. However, technical analysis indicates bearish momentum, which is a significant risk factor. The valuation is attractive with a low P/E ratio and a high dividend yield, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning the company well for future expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Profitability

Strong profitability margins reflect efficient operations and pricing power, supporting sustained earnings and competitive positioning.

Negative Factors

High Debt Levels

High leverage can increase financial risk, particularly in volatile markets, potentially impacting the company's ability to invest in growth.

Employee Base

A small employee base may limit the company's capacity to scale operations and manage increased demand effectively, posing growth challenges.

Revenue Decline

A significant decline in revenue growth rate could indicate market challenges or competitive pressures, affecting long-term business prospects.

Early Age Co., Ltd. Business Overview & Revenue Model

Company Description

Early Age Co., Ltd. (3248) is a company specializing in the development and distribution of educational technology products and services aimed at young learners. The company operates primarily in the educational sector, focusing on innovative learning solutions that integrate technology into early childhood education. Its core offerings include interactive educational software, digital learning platforms, and age-appropriate educational content designed to enhance the learning experience of children.

How the Company Makes Money

Early Age Co., Ltd. generates revenue primarily through the sale of its educational products and subscriptions to its digital learning platforms. The company offers various pricing models, including one-time purchases for software applications and ongoing subscription fees for access to its online learning resources. Additionally, Early Age Co., Ltd. may partner with educational institutions and schools to provide bulk licensing agreements, which contribute significantly to its earnings. The company also explores partnerships with other tech firms and educational organizations to expand its product offerings and reach a broader audience, enhancing its revenue potential.

Early Age Co., Ltd. Financial Statement Overview

Summary

Early Age Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth, efficient operations, and robust cash flow generation. The company's moderate leverage and stable equity position provide a solid foundation, although the high debt level warrants careful monitoring.

Income Statement

Early Age Co., Ltd. has demonstrated strong revenue growth with a 37.3% increase in the latest year. The gross profit margin stands at 31.1%, and the net profit margin is 11.2%, indicating solid profitability. EBIT and EBITDA margins are 18.8% and 23.6%, respectively, showcasing efficient operational performance. The company has consistently improved its revenue and profitability over the years, reflecting a positive growth trajectory.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 1.93, suggesting a moderate level of leverage. The return on equity is 11.6%, indicating effective use of equity to generate profits. The equity ratio is 31.7%, reflecting a stable capital structure. While the company maintains a healthy equity base, the high leverage could pose risks in volatile market conditions.

Cash Flow

The company has achieved a significant turnaround in free cash flow, with a growth rate of 767.0% from the previous year. The operating cash flow to net income ratio is 3.94, and the free cash flow to net income ratio is 1.59, indicating strong cash generation relative to net income. The improvement in cash flow metrics highlights robust cash management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.27B	4.73B	3.44B	3.70B	3.34B	3.57B
Gross Profit	1.02B	1.47B	1.07B	1.15B	1.00B	1.05B
EBITDA	734.46M	1.12B	748.00M	847.28M	636.85M	686.14M
Net Income	225.87M	529.85M	326.99M	375.58M	258.52M	302.53M
Balance Sheet
Total Assets	15.06B	14.40B	13.49B	13.15B	13.42B	12.39B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.78B	920.87M	964.11M	1.03B	1.25B
Total Debt	9.61B	8.79B	8.56B	8.36B	9.02B	8.13B
Total Liabilities	10.41B	9.84B	9.35B	9.25B	9.69B	8.83B
Stockholders Equity	4.65B	4.56B	4.14B	3.91B	3.74B	3.56B
Cash Flow
Free Cash Flow	0.00	841.93M	-126.25M	719.45M	-939.60M	-596.51M
Operating Cash Flow	0.00	2.09B	840.21M	1.17B	375.17M	795.50M
Investing Cash Flow	0.00	-1.35B	-992.17M	-473.38M	-1.41B	-1.43B
Financing Cash Flow	0.00	118.27M	108.72M	-757.23M	806.27M	439.84M

Early Age Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 818.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3248, the sentiment is Neutral. The current price of 818 is below the 20-day moving average (MA) of 829.80, below the 50-day MA of 862.73, and above the 200-day MA of 813.59, indicating a neutral trend. The MACD of -12.21 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 45.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3248.

Early Age Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3469	70 Neutral	¥3.79B	27.05	―	1.39%	11.10%	―
3246	69 Neutral	¥7.24B	40.54	―	3.37%	7.94%	-51.94%
3280	68 Neutral	¥6.20B	2.78	―	2.68%	62.88%	135.99%
3248	67 Neutral	¥2.65B	11.71	―	4.42%	-30.74%	-59.99%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8927	62 Neutral	¥14.79B	7.57	―	2.47%	44.91%	37.67%
8940	55 Neutral	¥8.56B	5.00	―	4.58%	―	―